If you’re wondering if you should invest in your company’s 401(k), the answer is generally a resounding yes. However, there are a few cases in which it might be beneficial to hold off on your retirement investing.
If you’re having trouble making ends meet and you’ve already examined your budget for ways to cut back and haven’t found anything, you might need to hold off on saving for retirement. In general, it’s not worth it to run up debts so that you’ll have money for retirement.
If you don’t receive any sort of matching from your company and you are a disciplined saver on your own, then you may not want to have your money tied up in retirement plans. Keep in mind that any money that goes into a designated retirement plan will have restrictions on when you can withdraw the money without penalty.
In general, you’ll want to save as much as you can in your company’s 401(k) and start as early as possible. Though you may have student loans and some other consumer debt, such as credit cards, your fixed expenses are lowest when you’re young. Before you have a mortgage payment or childcare expenses looming over your head, you should have some money set aside for retirement.